Urban Development: North Karnataka Urban Sector Investment Programme (NKUSIP)


  • The North Karnataka Urban Sector Investment Programme (NKUSIP) is the third Asian Development Bank assisted urban development project in Karnataka.
  • The expected impact of the Investment Program is improved urban infrastructure and services resulting in overall
    improvement of quality of life in the ULBs, where this programme is being implemented.
  • This will lead to increase in economic opportunities and growth in north Karnataka, and reduced imbalances between north Karnataka and the rest of the state.
  • 25 towns are covered under this program. The project cost is Rs.1980 Crore out of which, ADB loan is Rs.1188 Crore and Government of Karnataka share is Rs.792 Crore.
  • The major components under the program are water supply, sewerage, storm water drainage, road improvement, slum improvement and nonmunicipal infrastructure such as fire & emergency service, tourism & information and
    lake development.
  • ADB’s Multi-tranche Financing Facility (MFF) is utilized for the programme.
  • All four tranche loans have been signed and made effective.
  • 47 contracts are completed, 69 contracts are in progress, 5 contracts are terminated, procurement for 7 contracts are in progress.
  • The Tranche 1 has been closed financially. The overall financial progress for the financial year 2015-16, by the end of Dec 2015 is Rs.236.22 crore as against the budget allocation of 362.00 Crore.

The highlights of NKUSIP are as follows:

(a) Based on the lessons learnt from previous projects, the implementation is done on decentralized perspective.
(b) Advance action is being taken for acquisition of land, securing permission from the line agencies prior to contracting the             packages.
(c)  Implementation of 24 X 7 water supply subprojects at a cost of about Rs.400 Crores adopting Performance Based                     Management Contracts. This will benefit about 3,00,000 households in 13 ULBs. The operation of 24 X 7 water supply               works in Ilkal will commence during 2015-16.
(d)  Community Development Programme activities through NGOs in each of the program towns is being done to ensure
sustainability of initiatives.
(e)  Urban mapping in selected Program ULBs through Aerial Photogrammetry and Satellite Imagery.
(f)   State of art Sewage Treatment Plants are being constructed in Hubballi-Dharwad, Davangere and Kalburgi. The 40 MLD
Sequential Batch Reactor type Sewage Treatment Plant at Hubballi has been commissioned successfully.

Karnataka Urban Water Supply

Modernisation Project (KUWSMP):

  • Based on the success of 24×7 water supply Demonstration Project, the proposal of upscaling24x7 water supply to the entire corporation areas of Belgaum, Kalaburagi and Hubballi-Dharwad at an estimated cost of Rs.1809 crore has been approved, vide  Govt. Order No. UDD 244 PRJ 2013, dated 7.11.2013.
  • The share of the World Bank is 66% (Rs.1209 crore).
  • The details of the estimated cost of the project is as under Two studies viz., (i) Social & Environmental Assessment and (ii) Communication & Stakeholder Intermediation Strategy have been completed.
  • The above projects are proposed to be implemented on ‘Performance Based Management Contract (PBMC)’.
    a) Design & Implementation Period – 4 years
    b) Operation & Management Period – 8 years
  • Bids received from the prequalified bidders for “Operator Services” for Kalburgi, Belagavi and Hubballi-Dharwad have been opened in e-portal on 6th, 7th and 8th October 2015 respectively and the bids are under evaluation.
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